Hey kokoro,MEY are a junior and still a long way off being a...

Hey kokoro,

MEY are a junior and still a long way off being a producer. While they hold an impressive tenement area in Namibia it's had very limited drilling.

They drilled around 90 shallow holes at Koppies in Namibia for 1080 metres and an inferred resource of around 60m lbs from memory.

The Angela deposit in the NT is a different kettle of fish with Cameco/Paladin drilling 794 holes for 180,468 metres for a JORC defined deposit of 30m lbs before MEY bought it on the cheap along with Oobagooma and Bigrlyi and some other deposits.

The game changer according to Murray Hill is their patented U-pgrade process which enables MEY to remove a lot of the acid consumers (calcite) from the secondary deposits in Namibia and the Angela deposit. This could give them the option to outsource the concentrated ore to a 3rd party acid leach circuit, Murray has stated Husab has spare capacity so that could be an option.

They have performed proof-of-concept testwork at Angela and stated the process applies to that deposit too.

Murray has openly stated that they will more than likely be a takeover target down the line somewhere but hasn't ruled out going into production if circumstance heads them in that direction. Realistically that would be a couple of years out at the very least, even if they outsource the ore to Husab. That scenario sees a lower capex of around $200M.

I might point out that there has been some commentary on the validity of the U-pgrade process, I don't know what the issues were but Deep Yellow rejected the option to use the process, some talk about the terms/consideration being sought to use the process so it may not have been the process itself. Still, Murray is very adamant the process works and has even taken out 3 patents on the process, that's not a cheap exercise in itself.

I'm punting on either option, a takeover or developing the resource towards production.... due to the clean energy push I do think that uranium will become a very in-demand commodity over the next few years so the onus should be there for either.

I'm looking forward to seeing some results from Hirabeb which Murray said they will focus their next drilling at.

If I'm wrong on any of the above then I welcome any critique and any other insights.

Cheers